If a Bank Is Both the Drawer and the Drawee

question 36

Multiple Choice

If a bank is both the drawer and the drawee with regard to a draft,then the draft is a

• A)certificate of deposit.
• B)cashier's check.
• C)nonnegotiable instrument.
• D)promissory note.

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Definitions:

Shipment Date

The date on which goods are dispatched to a customer.

Cash Collected

The total amount of cash received by a company during a specific period, often from the sale of goods or services.

Accounts Receivable

Receivables from customers for deliveries of goods or services that remain unpaid.

Bad Debt Expense

The cost associated with accounts receivable that a company determines will not be collected, recognizing it as an expense.